Tag Archives: Mining Area C

BHP and Gallawinya agree on tyre agreement for WAIO operations

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A new contract with Pilbara Traditional Owner business Gallawinya Pty Ltd, will supply up to 4,000 tyres a year for light vehicles and light trucks across BHP WA Iron Ore’s central Pilbara mining operations, the mining company says.

Gallawinya is one of more than 80 Indigenous and Traditional Owner businesses engaged directly in the first half of BHP’s 2023 financial year – with a total spend of more than A$120 million ($82 million) – to Indigenous and Traditional Owner businesses through WAIO’s Project Rise initiative.

Chris Cowan, Head of Global Indigenous Procurement, said the Gallawinya contract represented a major step forward in a non-traditional supply area and would create social value opportunities including additional regional employment.

“We’re trying to find ongoing, longer term operational contracts to collaborate with Traditional Owner businesses, and this is a great example of that,” he explained.

“What I particularly like about this one is, it’s demonstrating a new category of supply by a Traditional Owner business that we haven’t seen before, and it’s going to create social value back into the communities in which we operate.

“We hope to collaborate with our maritime team to bring tyres directly into Port Hedland to reduce the need to transport the tyres by road from Perth to the Pilbara. This will improve our carbon footprint as well as safety risk and performance.”

Under the contract, Gallawinya will initially supply tyres to BHP’s central Pilbara operations (Mining Area C, South Flank and Yandi) before potentially expanding to other WAIO’s mining sites including Jimblebar, Newman and Port Hedland.

Gallawinya is a subsidiary of Nyamal owned and operated East West Pilbara Group, which employs more than 10 people in the Pilbara, through its facilities at Port Hedland and Karratha. The BHP supply contract will create more training and employment opportunities for Indigenous people.

Compared to the same period in FY22, to date WAIO has increased its year-to-date annual spend by around 62.5% and, thanks to Project Rise, is on track to deliver on its FY23 target of A$225 million spend with Indigenous and Traditional Owner businesses, which will extend to A$300 million in FY2024.

BHP signs up PMW Industries for crushing and screening plant gig at Mining Area C

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BHP has celebrated what it says is an historic agreement with PMW Industries and its Western Australia Iron Ore (WAIO) team, which will see the 100%-owned-and-operated Banjima Pilbara Aboriginal Traditional Owner business maintain a semi-mobile crushing and screening plant at its Mining Area C operation, in the Pilbara, supported by new strategic partner and Mineral Resources Limited owned company, CSI Mining Services.

Led by Banjima business owner, Paula White (pictured on the right), PMW will operate on country at the iron ore operation as part of this large-scale, long-term scope of work. It is expected to create up to 30 new employment and training opportunities for Banjima and Indigenous people.

The agreement builds upon WAIO’s existing relationship with PMW, which started more than three years ago through its Local Buying Program.

WAIO Asset President, Brandon Craig (pictured on the left), said he was proud of the growing relationship between BHP and PMW Industries, saying the crushing contract award was one of the largest in WAIO’s history.

“Our Mining Area C iron ore operation is on Banjima country – in line with our commitment to become the partner of choice for Indigenous people, this partnership is founded on respect and mutual benefit,” he said. “We are working hard to create more opportunities for Indigenous businesses to support the growth of Indigenous enterprise, partnering for the future.”

White added: “PMW Industries is very proud to be partnering with BHP and CSI to enable more employment and economic empowerment for Traditional Owners and Indigenous people. As a Banjima woman and business owner, I’m also delighted to be creating opportunities for other Indigenous women and young girls to follow their dreams.”

This step forward builds upon BHP’s commitment to drive more sustainable, profitable and enduring partnerships with Indigenous businesses across its operations. In WAIO alone, by the 2024 financial year, BHP expects to double its current annual spend with Indigenous businesses to over A$300 million ($204 million).

“At the same time, we are actively improving our sourcing systems and procurement processes, in partnership with Traditional Owner and indigenous businesses,” BHP says. “This was demonstrated with the PMW agreement, which followed a competitive Banjima-only tender, structured specifically to enable Traditional Owner businesses to operate on country.”

BHP reaches autonomous drilling milestone at WA iron ore operations

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BHP’s Western Australia Iron Ore division has reached a significant milestone, with its drills operating autonomously for more than 479,607 hours, drilling more than 25 million metres, the company said.

WAIO’s remotely operated drilling program commenced at Yandi in late 2016 and has since expanded to a total of 26 rigs across five Pilbara mine sites.

The rigs are all controlled remotely from the Integrated Remote Operations Centre (IROC) in Perth, Western Australia.

WAIO Asset President, Brandon Craig, said: “This is an exciting milestone in WAIO’s autonomous journey and one we should all be proud of.

“The autonomous drilling program sought to eliminate the risk of safety incidents and serious injuries to our people and, by removing them from the drilling frontline, we’ve also seen an increase in overall drill productivity.”

WAIO now has one of the biggest autonomous drill fleets in the world – which is managed by 32 crew members and one engineer all based at IROC.

IPRO Control Operations Manager, Clayton Hanrahan, added: “This achievement was made possible by a huge team of stakeholders, including the original Project Team, Technology, our vendor Epiroc, IPRO, IROC Drill and Control, all of our site partners in the Pilbara Drill and Blast teams and many more.”

Congratulations to everyone involved on reaching the milestone of autonomously drilling more than 25 million metres.

The automation journey begain with Yandi completing a successful 18-month trial of three autonomous drill rigs, paving the way for a staged approach across other WAIO mine sites.

Mining Area C introduced autonomous drilling in January 2017 before, in October 2017, the technology was implemented at Newman’s Eastern Ridge mine. In December of that year, Jimblebar introduced autonomous drilling and, in March 2018, Newman’s Whaleback mine implemented autonomous drill rigs. The journey has been rounded out by, in 2020, the introduction of autonomous drill rigs at South Flank, making WAIO’s drill rig program fully autonomous.

Monadelphous banks more work with Rio Tinto and BHP

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Monadelphous Group Limited says it has secured new contracts and contract extensions in the resources sector totalling approximately A$110 million ($80.1 million).

The company has secured a 12-month extension to its existing contract with BHP Iron Ore for the provision of general maintenance services for shutdowns, outages and minor capital works at the Mt Whaleback, Jimblebar, Eastern Ridge, Mining Area C and Yandi mine sites located in the Pilbara region of Western Australia.

Monadelphous has also been awarded several new contracts with Rio Tinto in the Pilbara under its sustaining capital projects panel agreement for:

  • The construction of new hawser rails and upgrades to the existing dolphins at Cape Lambert A and B wharves. The work, which includes design, fabrication, supply and installation, is expected to be completed by July 2023; and
  • The upgrade of conveyor gravity take-up systems at East Intercourse Island and Cape Lambert, with work expected to be completed in the September quarter of 2022.

In addition, Monadelphous has also secured a 12-month extension to its existing mechanical and electrical maintenance, shutdown and project services contract across BHP’s Nickel West operations in Western Australia.

Babylon wins year-long extension at BHP Mining Area C

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Babylon Pump & Power Limited says it has secured an extension of an existing power generation contract with BHP’s iron ore division in Western Australia.

The extension is tied to a contract the Australia-listed firm secured back in July 2018 through ADENCO Water Management & Civil Engineering. This saw Babylon supply, install and maintain power generation equipment for the Surplus Water Pipeline project at BHP’s Mining Area C project in Western Australia.

Babylon says it has since supplied and installed this equipment on site and will continue to maintain it for the project.

BHP is in the process of extending its Mining Area C through the development of the South Flank iron ore project, which is due to start up in 2021. It will be one of the largest iron ore processing hubs in the world, with an 80 Mt/y crushing and screening plant, an overland conveyor system and rail-loading facilities.

Babylon’s extension contract will run for a term of 52 weeks and is expected to contribute circa-A$1.1 million ($663,893) over that period, the company said.

Mondelphous strengthens BHP ties in Western Australia

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Monadelphous Group has secured a number of contracts across Western Australia with BHP as part of a package of construction and maintenance agreements worth circa-A$110 million ($75 million).

The news comes on top of existing maintenance and other contracts the company has previously secured with the major mining company.

These include a contract at the BHP-owned Mining Area C iron ore mine site in the Pilbara, where Monadelphous will provide upgrades to existing conveyer equipment, and power switching and stackers. Work is expected to be completed in the September quarter of 2020.

The engineering firm has also won a contract for the provision of services associated with the demolition and rehabilitation of a number of end-of-life facilities at Nelson Point in Port Hedland. This contract is expected to commence in January 2020 and will be completed in the September quarter of 2020.

Monadelphous will also carry out a 12-month extension to its existing contract with BHP’s Nickel West division for the provision of maintenance, shutdowns and off-site repair services at the Kalgoorlie nickel smelter.

Lastly with BHP, the company has been awarded a contract with thyssenkrupp Industrial Solutions (Australia) for the construction of a reclaimer and two stackers at BHP’s South Flank project in the Pilbara. thyssenkrupp has previously said these will be the largest rail mounted stacker/reclaimers in the world, with a loading capacity of 20,000 t/h.

Monadelphous’ work is expected to be completed in the March quarter of 2021.

In Queensland, meanwhile, the ASX-listed company has secured a three-year contract for the provision of general mechanical and maintenance services as part of Incitec Pivot’s scheduled turnarounds for its Queensland manufacturing facilities, it said.

Mammoet keeps BHP South Flank iron ore project moving forward

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Mammoet is doing its bit to ensure BHP hits its 2021 first production goal at the South Flank iron ore project, in the Pilbara of Western Australia, having started transporting the first heavy components for the under-construction mine.

Around 1,900 items including prefabricated and modular mine processing plant units of various sizes will be transported from Port Hedland to the new mine site, 340 km away, Mammoet said.

The $3.6 billion South Flank project, around 8 km south of BHP’s existing Mining Area C operation, will replace production from BHP’s Yandi mine, which is nearing the end of its life. The investment into the new mine site will ensure the continued production of high-quality iron ore for more than 25 years, according to BHP.

Once complete, South Flank will be one of Western Australia’s largest iron ore processing facilities. As mentioned, production is expected to start in 2021.

Mammoet has existing operational branches in Port Hedland and Karratha, meaning it is equipped to provide localised support for the South Flank project.

Among other heavy haulage equipment on site, Mammoet has 96 axle lines of SPMT located in the port and the mine site, as well as 178 axle lines of conventional trailers with 14 prime movers. The company says it has approached the large-scale logistics project with detailed planning to coordinate the thousands of components that are arriving at the port over 14 shipments and ensure they are delivered to site safely and on time.

BHP extends FIFO agreement with Alliance in Western Australia

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Alliance Aviation Services says it and BHP’s Western Australia Iron Ore division have agreed to extend their air charter services agreement for a further two years.

The extension solidifies a relationship that started with the first flight for BHP WA Iron Ore in 2009, Alliance said.

BHP’s WAIO division is an integrated system of four processing hubs and five mines connected by more than 1,000 km of rail infrastructure and port facilities in the Pilbara region of northern Western Australia. At each processing hub – Newman, Yandi, Mining Area C and Jimblebar – the ore is crushed, beneficiated (where necessary) and blended to create high-grade hematite lump and fines products. Iron ore products are then transported along the Port Hedland–Newman Rail Line to the Finucane Island and Nelson Point port facilities at Port Hedland.

Lee Schofield, Alliance’s Chief Executive Officer, said: “Alliance is delighted to be continuing the provision of these charter services into Coondewanna and Barimunya. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension.”

Schofield, added: “In May this year, BHP acknowledged Alliance’s exceptional safety and operational record when BHP presented Alliance with an Aviation Safety Award in recognition of the safe carriage of 3.5 million BHP staff and contractors on charter and scheduled services throughout Australia from April 2002 to April 2019.”

WA government, EPA approves BHP’s strategic 50- to 100-year Pilbara mining plan

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The Western Australia Government has approved a 50- to 100-year strategic mining proposal for the Pilbara by BHP, which outlines bold plans for new and existing mines, the state said.

BHP’s Pilbara Expansion Strategic Proposal details a cumulative picture of the miner’s planned and potential operations across the Pilbara, including mining operations, rail, storage areas, dams and associated mine infrastructure.

It mentioned new potential mining operations at Caramulla, Coondiner, Gurinbiddy, Jinidi, Marillana, Mindy, Ministers North, Mudlark, Munjina/Upper Marillana, Ophthalmia/Prairie Down, Rocklea, Roy Hill and Tandanya; alongside future expansions of existing mining operations at Jimblebar, Mining Area C, Newman and Yandi (pictured).

This type of “strategic proposal”, which the Environmental Protection Authority (EPA) has approved with conditions, “helps reduce red and green tape, allowing the EPA to consider the cumulative impacts of future proposals, rather than assessing impacts on a case-by-case basis, as individual mines or developments are proposed”, according to the government.

The EPA assessed the impacts to flora and vegetation, fauna, water quality and quantity, air quality as well as social surrounds, with the ministerial statement for BHP’s strategic proposal including conditions that may be applied to each development, including environmental management plans, a cultural heritage management plan, a mine closure plan and offsets through contributions to the Pilbara Environmental Offsets Fund where significant residual impacts remain.

“BHP is required to refer future individual proposals outlined in the ministerial statement to the EPA to determine if they meet the high environmental standards set by the strategic assessment,” the government said.

WA Premier, Mark McGowan, said BHP’s plan has the potential to deliver tens of thousands of jobs for Western Australians.

“We expect this Australian-first plan will reduce environmental approval times by up to 50%, while maintaining the highest environmental standards,” he said.

“Industry has been crying out for this type of plan. It recognises the need to reduce unnecessary ‘green tape’ to increase investor confidence, and pave the way for more jobs. It is another sign our economy is improving with the major miner taking a long-term view of its proposals in the state.”

Environment Minister, Stephen Dawson, meanwhile, said: “The Pilbara region holds immense environmental value and a key focus of the EPA assessment was to ensure the proposal did not significantly impact on important regional environmental values, including Karijini National Park and Fortescue Marsh.

“Strategic proposals allow the EPA to take a bigger picture view of the potential environmental impacts the proposals may have, considering the cumulative impacts rather than on a case-by-case basis, as individual mines or developments are proposed.”

BHP grants Decmil extension to Mulla Mulla camp contract

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Decmil Group’s wholly-owned subsidiary, Decmil Australia, has been awarded an extension to its contract with BHP at the Mulla Mulla camp in Western Australia.

The works, which upgrade and expand the existing Mulla Mulla village, will support current operations at Mining Area C and the South Flank iron ore project, the latter of which is currently in execution.

The extension adds to the A$13 million ($9.5 million) early works package announced in August 2017 and the A$75 million stage one package announced in November 2017.

The second stage includes the refurbishment, relocation and installation of a further 632 rooms, the installation of 10 laundries and the supply and installation of new verandas. The scope also includes internal roads, drainage and concrete footpaths. The works on the second stage will commence immediately.

The 80 Mt/y South Flank iron ore project is aimed at sustaining BHP’s Western Australia iron ore production as the Yandi mine is exhausted over the next five to ten years. The South Flank deposit is around 130 km by road northwest of the town of Newman, and approximately 8 km to the south of the company’s existing Mining Area C operation.

BHP commenced its first blast at the project in September and expects first ore extraction to take place in 2021.